Standing out in the financial crowd

By. Jill Nowacki, Maps Federal Credit Union

Some time ago, my CFO and I realized that if we agree on a new idea, it is likely something that will move our credit union in the right direction. The Community Development Financial Institution (CDFI) Certification and Low Income Credit Union (LICU) Designation fit well within the category of opportunities that make good sense to both of us.

Since obtaining a community charter in 2009, Maps has embraced a responsibility to serve our entire community. As we have looked to expand the financial capacity of our field of membership, we partnered with non-profits and other community organizations to gain understanding. Over the past several years, we learned of significant demand in our community for financial inclusion and financial capability training. Through community partnerships, we have effectively increased access to and understanding of mainstream financial services and are proud to be building a membership that reflects the community we serve, while simultaneously achieving healthy growth.

During this time period, Maps learned of the benefits of obtaining a CDFI certification and came to understand our existing business practices make us a strong candidate. The certification would simply recognize what we already do to improve our community and open doors to more opportunities for us to positively impact members’ lives.

This point- that we would not have to deviate from existing business strategies- is perhaps what satisfied both the CFO and me (and ultimately the other key stakeholders who will move this forward). By continuing to make sound business decisions that contribute to our financial strength, improve return to members, and deliver on our promise to help members navigate any stage of life, we will earn a CDFI certification.

Since beginning work on our application in August 2012, we learned Maps is also likely to qualify for a LICU designation. This designation affirms that we have successfully served a community impacted by the recession. In addition, low income designated credit unions qualify for exception to the aggregate limits for member business loans and are eligible to accept secondary capital. These hot topics have been legislative priorities for Maps for years. It is rewarding to learn that we may not have to wait for the legislative process. Instead, because of our service to members, a LICU designation could allow Maps to make affordable credit even more available, while positioning us to better serve every niche in our community.

Today, Oregon’s credit unions currently face three different pieces of anti-credit union legislation in our state house. One of these pieces, HB 2485, subjects Oregon’s credit unions to a version of the federal Community Reinvestment Act. While I would prefer if this bill just had not been introduced, I am confident about the story Maps and our peer credit unions can share and believe legislators will deem this legislation unnecessary. We don’t need CRA: We have served our communities in a manner that makes us eligible for LICU designations or CDFI certifications. Our numbers reflect service to our entire community, especially those members of modest means who have faced increased hardship in recent years, and clearly demonstrate community investment.

I am not a CDFI or LICU expert (check out related articles by Jamie Chase, Scott Butterfield, Chuck Cockburn or Pablo DeFilippi to see real knowledge in action on those topics), but I know credit unions and I know my community. I believe we have the ability and responsibility to improve the lives of our members. I work with a CFO who maintains sharp focus on achieving financial performance that demonstrates good stewardship of members’ money. A CDFI certification and LICU designation contribute to our mutual goal of improving the lives of our members while making sound business decisions.

As Maps and other credit unions continue to differentiate in a crowded financial services marketplace, the CDFI certification and LICU designation open doors. I look forward to seeing peers in our industry maximize these opportunities, while serving members and building a stronger bottom line.

Jill Nowacki

Jill Nowacki

Jill Nowacki started her career with credit unions in 2001. She has taken on leadership roles at credit unions and state and national trade associations. Now, she uses her experience ... Web: www.humanidei.com Details